THE pound has tumbled to an 11-week low against a basket of currencies, while striking a 20-week low versus the euro after the UK has been left with a hung parliament.

GBP/EUR instantly dropped around -2 per cent last night after exit polls

GBP/EUR instantly dropped around -2 per cent when the exit polls were predicted, which stunned the markets at the time and have stunned them again this morning by proving to be shockingly accurate.

The pound has continued to weaken and is currently trading around €1.135 after Theresa May's attempt to return to Parliament with a stronger majority has seemingly backfired.

The Conservative Party is now in the position where it may have to form a coalition with the Democratic Unionist Party in order to have a majority, after claiming 48.6 per cent of the votes to the Labour Party's 40.2 per cent.

It will be difficult for Theresa May to survive

DUP party leader Arlene Foster

Just a few weeks ago, polls were predicting the Conservatives would secure a landslide victory, with even eve-of-election surveys claiming Theresa May was on course to win by the biggest margin since the days of Margaret Thatcher.

The Brexit talks now look to be in severe jeopardy.

They are scheduled to begin in just ten days' time, but with severe doubts hanging over the ability of May to remain as Conservative Party leader, when the talks will actually begin - and who will be leading them - remains up in the air.

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Although the DUP have suggested they may back the Tories, party leader Arlene Foster has hinted that she expects Theresa May will be forced to stand down.

Speaking to BBC Radio Ulster, Foster said: "It will be difficult for her to survive given that she was presumed at the start of the campaign, which seems an awfully long time ago, to come back with maybe a hundred, maybe more, in terms of her majority".

Labour leader Jeremy Corbyn has also called for the Prime Minister to stand down.

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The pound has tumbled to a 20-week low versus the euro

He said: "She fought the election on the basis that it was her campaign; it was her decision to call the election, it was her name out there.

"She was saying she was doing it to bring about strong and stable government.

"Well, this morning, it doesn't look like a strong government, it doesn't look like a stable government, it doesn't look like a government that has any programme whatsoever".

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Meanwhile, Labour Shadow Chancellor John McDonnell has claimed that the party may look to form a minority government, but that the party is not looking for any coalitions or deals with other parties.

Sources in Brussels have apparently reacted with shock to the decision, while Senior Tories are reportedly questioning how the party can press on with its Brexit plans given the poor showing of support it received at the polls.

The many questions surrounding the future of UK politics are likely to keep the GBP/EUR exchange rate on turbulent form today.